Damages Attorney | Helping a Client Claim Property Damage Compensation and Obtaining Full Payment

If a vehicle or other property is damaged in a traffic accident, the costs of repair and other property damage may be claimed.

Property damage compensation refers to compensating for the loss caused to a victim's property as a result of a traffic accident.

This may include not only vehicle repair costs but also personal belongings damaged in the accident.

-Repair Costs

Vehicle repair costs arising from a traffic accident may be claimed.

If the vehicle is damaged beyond repair, the amount of loss is the difference between its exchange value immediately before the accident and the amount obtained from selling the vehicle after the accident.

If repair is possible, the repair costs may be claimed, but those costs cannot exceed the exchange value immediately before the accident.

In particular, if an accident occurs shortly after the vehicle was first delivered, the diminution in the vehicle's value (diminished-value loss) is also included within the scope of compensation, but for a vehicle delivered long before the accident it is often difficult to prove diminished-value loss, so this category of loss is difficult to recover.

In the case of high-end vehicles in particular, the amounts involved are larger, so it can be helpful to proceed with the assistance of an attorney.

-Replacement Costs

The cost of renting a replacement for an item that cannot be used during the time it takes to repair or repurchase it after an accident is also included within the scope of compensation.

If a car is damaged in a traffic accident, the cost of renting a vehicle of the same class as the damaged one is also included within the scope of damages.

-Compensation for Business Losses

If property used for business is damaged, the reduction in income caused by the inability to use that property is also subject to compensation.

In this case, the amount of loss is calculated by multiplying the daily loss by the period it takes to repair or repurchase the business property.

However, if the victim owns other business property or replacement costs are recognized, business-suspension losses cannot be claimed.

1. Case Law on Compensation for Diminution in the Exchange Value of a Vehicle Involved in a Traffic Accident

While driving his Grandeur sedan, A was struck from behind by a following vehicle.

The accident damaged the vehicle's rear bumper and trunk, among other parts, and although A received 3.76 million won in repair costs, he filed a lawsuit seeking additional compensation, claiming a decline in the vehicle's market value (diminished-value loss) even after repairs.

The Supreme Court held that, where a vehicle is damaged in a traffic accident, the loss due to the decline in exchange value must be compensated in addition to the repair costs for the damaged parts, regardless of the insurance policy terms.

The insurance policy provided that a certain amount corresponding to the decline in exchange value would be paid only where the repair costs exceeded 20 percent of the vehicle's transaction price immediately before the accident, but the Supreme Court held that it was not bound by this provision.

The damages attorney emphasized that the vehicle at fault in this accident was uninsured.

Because that vehicle was not covered by own-damage insurance, the client was in a position to recover the full repair costs from the at-fault party in the traffic accident.

The damages attorney argued that the repair cost obtained from the repair shop was fifteen million won and requested 🔗traffic accident damages in that amount.